Diversified Gas & Oil Share Discussion Threads

[spectoacc] 21/6/2018 06:57

@podgyted - what they're gaining is scale: they rapidly became the biggest producer on AIM and are now getting much larger again. As far as I can see, yes, they've gone beyond their original remit of "buy very cheap assets that shale gas producers need to be in production in order to keep their acreage". Now it's "We have the infrastructure in place, the pipelines, the route to market, we're the obvious buyer of large-scale assets".

It seems to be working - more pertinent to "they're taking on $1bn of debt" might be "the market trusts them sufficiently to lend them a billion dollars".

You're right about how quickly it's happening - remember only a matter of months ago when they were paying some massive interest rate (9%?) on short-term debt? They repaid all that with the last equity raise/cashflow & now the market regards them very differently.

Just my two cents worth. I've seen nothing to make me want to sell DGOC yet, though admittedly haven't bought more on the way up.

[podgyted] 20/6/2018 17:35

In my own mind I bought DGOC as a quasi utility - unusual in an oil/gas company - but that was the attraction. Stable(ish) revenues and good dividends, without the "exploration" bit.

They now seem to be taking this model to heart and are gearing up quite considerably if this deal goes ahead - this makes me (perhaps illogically given my first sentence) a bit nervous. A $1bn facility would have seemed like fantasy only a few months back.

Anyone got any thoughts?

Anyway, can't do anything at the moment, and until I see the details ..........

[carcosa] 20/6/2018 14:11

Until the new AIM admission document has been published or until the Company confirms that the Acquisition is not proceeding.

[suzypink] 20/6/2018 14:02

How long will the shares be suspended for ......

[carcosa] 20/6/2018 12:00

At a guess I'd wager around 3-6 weeks from now, based on similar experiences.

[spectoacc] 20/6/2018 09:52

Wonder how long before we hear what the placing price is.

[spectoacc] 14/6/2018 21:59

@Divmad - personally I'm hoping it's done at a small premium again.

[divmad] 14/6/2018 21:38

Disappointed that existing shareholders have not been invited to participate by way of a Subscription Share Offer, but otherwise all seems in order if the placing is done at a small discount to the current share price

[lord gnome] 14/6/2018 13:44

Super news again. This is growing into one heck of a company.

[spectoacc] 14/6/2018 13:23

Wow. They really are the consolidator - particularly noteworthy to see it's a $1bn facility, so more upsizing still planned.

Key thing for me will be the price they get the placing away at - if it's anything like last time, we're in for a pleasant surprise.

Up and up from here IMO, this is turning into one of my best holdings.

[zengas] 14/6/2018 12:10

Last share issue placing was at 80p.

If this one for $225m/£170m is done at either 80-90p means 188-212m new shares and a final figure of around 500m in issue.

Will lift reserves to just shy of 400 mmboe and production of over 60,000 boepd.

Net debt was $75m at 31/3/18 (311m shares in issue).

New debt facility of $1b with a borrowing base initially of $600m. Going to draw $376m for this - so net debt should be around the $425m level with further headroom of $175m available inside the $600m current borrowing base and a total of $575m available overall for further acquisitions beyond this one.

60,000 boepd @ $5/boe profit margin = should be over $100m/yr.

They intend to pay not less than 40% of free cash flow out as dividends so $40m/500m shares = possible future 8c/share up from the previous 5.44c for full year 2017. 6% yield at 94p? and capital growth and given they have upped the borrowing facility it won't surprise me to see this being a 100k boepd producer in due course.

[carcosa] 14/6/2018 11:11

Wow! I was not expecting that!
Shares suspended due $1 billion raise to fund (reverse) acquisition for 11,350 wells. Daily production increase of approximately 114%. Immediately earnings accretive.

[lab305] 13/6/2018 20:28

Thanks blueeyes13 . Paid this afternoon. Bought 2500 @ 95.6 with the money.

[blueeyes13] 13/6/2018 16:36

Lab, AJ Bell paid mine today, in full in my sipp and with uk tax deducted from my dealing acc. I'm non-UK res based overseas so not allowed an isa.

[jq1984] 08/6/2018 23:53

2.56p a share 'pre-tax'

[poleaxe] 08/6/2018 22:33

can anyone confirm the rate i received roughly 2.16p

[cheshire man] 08/6/2018 10:19

Received mine am with II

[jq1984] 08/6/2018 10:16

This is my third dividend from dgoc. All have been paid into my jarvis account.The first dividend took a while, but the last two have been paid in within a matter of days, and all have been for the 'full amount' with no need for forms.

[plootocrat] 08/6/2018 09:47

FWIW. My holding is with Barclays Smart Investor and I have not received my dividend either.
If I buy more it will be through II who are far from.perfect but still better than Barclays whose service and functionality has gone massively backwards since the transfer from Barclays Stockbrokers last August.

[alter ego] 08/6/2018 09:17

lab, might be worth speaking to another broker about reimbursing your leaving fees. Have done this myself in the past and got new broker to pay the fees. HL might do it for you. Also HL occasionally offer a cash back tiered to the value of your holdings. Worth a look?

[lab305] 08/6/2018 08:49

Over one week on from the dividend and AJ Bell Youinvest have still not paid it to me. Disgraceful. I hold the stock with other brokers and all paid on the due date. I telephoned AJ Bell and they blamed the registrar for sending them a cheque which would take up to 10 days to clear. I then checked the veracity of this with the registrar. A J Bell could choose between a cheque or payment through crest.
In the meantime the share price has risen as has the pound against the dollar.Both these factors will cost me as my intention was to reinvent the dividend in more stock.
To those who say just leave A J Bell, nothing would give me more pleasure but they will charge me several hundred pounds just to transfer out. The case continues with the ombudsman.

[lord gnome] 06/6/2018 08:16

Yes lab305, that's right. On this occasion I did however check the execution time and they were all timed at a few minutes after 11.00am when the bid price was 94p. It would now certainly appear that whoever is selling, HSBC is buying. I just hope that the seller stops before HSBC stop buying.

[lab305] 06/6/2018 07:44

Lord Gnome on 31 May when you theorised about a large seller it now transpires that HSBC bank were acquiring over 5% of the company. Again yesterday the share price was not just holding firm but rising around 3%. These trades are much less transparent than they appear. It is entirely possible that large buys are executed earlier in the day but reported late.